Tung warned that if the situation continues, American store shelves could start to resemble those in developing countries — sparsely stocked and unreliable. "Within two months, shelves in the United States might resemble those in third-world countries, where people visit department stores and markets only to find empty shelves," Tung said, highlighting the risks of continued hesitation among businesses.
At the heart of the concern is the Trump administration's approach to tariffs, which has been characterized by abrupt shifts and partial pauses. Earlier this month, Trump announced a temporary suspension of certain tariffs affecting trading partners such as Vietnam, Indonesia, and India — countries where Pegatron has expanded its manufacturing operations in response to earlier rounds of U.S.-China trade tensions. Despite this temporary reprieve, a 10% tariff on a wide range of imported goods remains in place, maintaining a cloud of uncertainty over the market.
Although the intention behind the pause was to create breathing room for trade negotiations, Tung noted that many U.S. importers remain hesitant to accelerate shipments. Businesses are wary of making aggressive moves if there is a possibility that tariffs could be altered or repealed again in the near future.
Tung also commented on the broader impact of the tariffs on the global supply chain. "Trump’s actions have disrupted the seamless logistics that are crucial to today’s interconnected manufacturing networks," he said. However, he stressed that Pegatron is maintaining its long-term strategies despite the near-term volatility. "We won’t immediately adjust our long-term plans just because of two or three months of tariff changes. Manufacturing bases require long-term planning," he explained.
Since the early stages of the U.S.-China trade conflict during Trump's first term, Pegatron has been proactively diversifying its production footprint, expanding beyond China into Southeast Asian nations and Mexico. Nevertheless, Tung made clear that decisions about new manufacturing sites are closely coordinated with clients rather than being made independently by Taiwanese contract manufacturers.
“We negotiate with our customers about where to build facilities," Tung said. "It’s not a decision we can make alone.”
The comments from Pegatron’s chairman underscore how prolonged trade uncertainty continues to ripple through the global technology supply chain, posing challenges for businesses and consumers alike as they head into crucial sales periods.